Apple Deprived Russell 2000 Rejected by Triple Resistance

Thursday was a great day for Apple, an average day for indexes with some exposure to Apple, and a forgettable day for ex-Apple indexes. This raises the question: How strong (or weak) would this week’s market action be without AAPL?

On Thursday the Nasdaq-100 (Nasdaq: QQQ) was up 0.96%, the S&P 500 (NYSEArca: SPY) 0.17%. But the Russell 2000 (NYSEArca: IWM) was down 0.24%.

What’s the common denominator of this fragmented performance?

Apple! AAPL soared 8.20%.

AAPL accounts for 11.78% of the Nasdaq-100, 2.80% of the S&P 500, and zero of the Russell 2000. Thursday was Apple-day. The more Apple, the better.

How would the broader market have fared without Apple’s boost?

One way to find out is to look at the equal weighted Nasdaq-100 ETF (QQEW), which was down 0.01%.

Another way to find out is to look at the Russell 2000, although representing a different market segment (small caps), which is totally Apple free.

The Russell 2000 was rejected by resistance cluster at 1,147, 1,160 and 1,165.

The performance of lesser or non-Apple exposed indexes cautions that the broad market is weaker than it appears.

In fact, the Nasdaq chart shows an immense amount of potentially bearish energy. More details here:

Did the Nasdaq Just Start a Prolonged Head-and Shoulders Decline?

Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013.

Follow Simon on Twitter @ iSPYETF or sign up for the FREE iSPYETF Newsletter to get actionable ETF trade ideas delivered for free.

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